Leaders Index 4-1-15

The market opened lower today as was down the entire session. The major averages were trading with some decent losses early and held those levels much of the day before a late rally saw them close off their lows. The COMPQ finished with a loss of .42% while the SPX was off .40%. Both closed in the upper half of their intraday ranges, but that is about the only positive thing you can say about the day’s action. Volume was slightly higher today so there was an additional distribution day today, making it nine on both major averages. The COMPQ held it’s important 50dma, but the New York averages remain below this level. The best chart still belongs to the small caps. Leading stocks were lower along with the overall market as the leaders index fell .90% on the day. This was a bigger decline than the major averages so the relative strength line of the index lost ground. The index closed high in it’s intraday range and it held it’s important 17dma. This shows that quality growth stocks are not getting hit hard yet, but the action hardly inspires confidence. Recent breakouts like RH are not acting well. After the last two trading sessions pretty much completely wiped out Monday’s strong gains it is hard to feel good about the rally. The very high distribution count is also a big concern. Right now the rally is on the edge of failure and there must be some strong gains with real conviction or it is likely over. Jerry